The love affair between Google and Apple has been a rough one. At one point the two got on really well, with some Google Apps being default apps on Apple’s iPhone, like YouTube and Google Maps. However, things turned sour when Google decided to abandon iOS and Apple in return removed all traces of the company from its mobile operating system. However, there’s one place Google still remains, and that’s in Apple’s mobile Safari search, and this privilege doesn’t come cheap!
According to a report from Bloomberg, since the love affair between Apple and Google went south, Google has been paying Apple a bucket-load of cash to remain the default search engine for mobile Safari. How did this information get out? Well it comes courtesy of an ongoing lawsuit between Oracle and Google regarding Java licencing issues.
And the amount Google pays Apple every year to remain the default search engine? $1 billion dollars.
Seriously though, Google doesn’t just have to pay $1 billion each year, they also have to share a percentage of ad-revenue it generates via iPhone results too.
According to Bloomberg:
Apple received $1 billion from its rival in 2014, according to a transcript of court proceedings from Oracle Corp.’s copyright lawsuit against Google. The search engine giant has an agreement with Apple that gives the iPhone maker a percentage of the revenue Google generates through the Apple device, an attorney for Oracle said at a Jan. 14 hearing in federal court.
Annette Hurst, the Oracle attorney who disclosed details of the Google-Apple agreement at last week’s court hearing, said a Google witness questioned during pretrial information said that “at one point in time the revenue share was 34 percent.” It wasn’t clear from the transcript whether that percentage is the amount of revenue kept by Google or paid to Apple.
Of course Google tried their best to get this shielded from public view, but apparently the Judge didn’t oblige. Now it’s out however, it’ll be interesting to see whether things change, for example, will Bing and Yahoo offer a competing price to become the default search engine? It’s unlikely, but it could happen, right?